Influence of Price and Distributive Fairness on Micro Finance Customers' Relationship Commitment: PLS-SEM Analysis

Dr. Shaikh Rafiqul Islam
2019 International journal of science and management studies  
Bangladeshi Micro Finance Institution (MFI) sector is highly competitive in financial industry. Due to strong multifaceted competition customer drop out (exit/switching) is taking place. In fact, to achieve sustainability, MFIs need to reduce the dropout rate and to retain customer by developing relationship commitment (RC). Hence, the aim of the empirical study is to find out how the clients drop out from the MFI can be prevented through developing relationship commitment in the relational
more » ... ange context. The study focuses on the price fairness and distributive fairness as an antecedent of relationship commitment. The PLS-SEM technique is utilized for the analysis of data collected from 409 consumers of different MFI's of Bangladesh. The study employed survey method for getting responses from MFI consumers about price fairness, distributive fairness and relationship commitment related statement. The study explores that price fairness, distributive fairness, has significant effect on relationship commitment. Hence, the findings of this model may be applied by the policy makers and the practitioners as an approach to enhance relationship commitment in the MFI's in developing economy context.
doi:10.51386/25815946/ijsms-v2i5p109 fatcat:jzdvpntnj5elrdjeai2crc56gi